ARMENIA

Republic of Armenia

Hayastani Hanrapetut 'Yun

COUNTRY OVERVIEW

LOCATION AND SIZE.

Armenia is located in the southwest Caucasus Region, neighboring on
Georgia and Azerbaijan to the north, Iran and Turkey to the south, and a
separate province of Azerbaijan in the southeast. The total area of the
country is 29,800 square kilometers (11,505 square miles), making it
about the size of Maryland. The nation's capital is Yerevan, with
a population of 1.5 million.

POPULATION.

The total population of Armenia was estimated at 3,344,336 people in
July 2000. According to the United Nations'
Human Development Report
, the total population of Armenia in 1993 was estimated at 3.7 million
people. Hence the population has dropped since 1993 by more than 350,000
people, or about 10 percent. This decline is the result of a low
fertility rate and wide-scale
immigration
(there are 4.23 migrants per every 1,000 members of the population).
Life expectancy at birth for the total population is 66.4 years (61.98
for males and 71.04 for females). The total fertility rate is 1.47
children born per woman, which is below the replacement level, with
10.97 births per 1,000 members of the population. (Replacement level is
a term that refers to the number of children a couple must have to
replace only themselves. Thus, a man and woman would have 2 children to
achieve replacement level. If a society has an overall replacement level
of 2, then it has a stable population, neither growing nor shrinking.
When women in a society typically have fewer than 2 children on average,
this can be a sign of a shrinking population over time.) The infant
mortality rate is 41.48 deaths per 1,000 live births.

Ethnic Armenians comprise 93 percent of the population. Other ethnic
groups include the Azeris at 3 percent, Russians at 2 percent, and Kurds
at 2 percent. Almost 96 percent of the nation's population speak
Armenian. Russian is the second most common language, although only 2
percent of the population uses it as their primary form of
communication. Orthodox Christianity is the most popular religion. The
population density is 137 people per square kilometer (355 per square
mile). About 31 percent of the population lives in rural areas and 69
percent in urban areas.

MINING.

Armenia possesses the second-largest reserves of copper in the world.
Other important reserves are molybdenum, zinc, gold, silver,
construction stones (mainly granite and marble), and other materials
such as betonite, bauxite, perlite, zeolite, and diatomite. In the 19th
century, industrial metallurgical mining started in the Alaverdy and
Zangezur regions, and during Soviet times these activities increased
enormously. In the 1980s, 25 percent of the Soviet molybdenum was
supplied by Armenia. In 1991 the mining industry collapsed due to
deteriorating conditions in the mines and declines in demand. In 1996,
the mining industry started to recover, with production rising 32
percent in the period from 1996-99. From January to June 2000, it rose
an additional 16 percent.

After food processing and jewelry and diamond processing,
Armenia's mining sector was the third-largest industrial sector
and the third-largest exporter. According to the Armenian government,
exports of minerals and non-precious metals totaled roughly 23 percent
of exports in 1995. Although the mining sector does relatively well, its
production and export are well below its potential. The government has
prepared a program to increase mining and metal production and to export
more semi-finished products because of their higher
value added
. The major copper-molybdenum companies and the gold company are not yet
privatized.

MANUFACTURING.

Armenia was the leading chemical producer in the Caucasus in the 1970s,
producing synthetic rubber, latex, acids, various glues, and special
films mainly for the military sector. In the 1980s the chemical industry
employed 24,200 people and accounted for 6.6
percent of the industrial production. The collapse of the Soviet Union,
the energy crisis of 1992-93, and the war with Azerbaijan decreased the
volume of production by more than 50 percent. In 1999, Armenia imported
6 times as many chemical products and materials as it produced itself.
The main chemical export product is rubber, comprising 82 percent of
total chemical exports, of which 93 percent went to states of the former
Soviet Union. According to expert Jocelyne Decaye, the main weaknesses
of Armenia's chemical industry are "high dependence on
imported raw materials, obsolete technologies and old production lines,
logistical difficulties related to Armenia's location,
overstaffing and high costs for transports and electricity."

Armenia's light industry sector was well developed in the 1980s,
when it had 115,000 employees and accounted for 25 percent of total
industrial production. In the 1990s, however, the share of light
industry in the total industrial production declined to under 2 percent.
Textile and clothing production make up the most significant activities
in this sector.

In 1999, the food processing industry accounted for 39 percent of total
industrial output and 61 percent of total manufacturing output. In the
1980s, food processing accounted for only 18 percent of Armenia's
total industrial production. The first 5 years of the 1990s saw a rise
of nearly 70 percent. The major food products are wine and brandy, with
such products as vegetables, fruits, tobacco, potatoes, cotton, grains,
and teas making up the rest. Less than 10 percent of the total
production is exported (US$16 million in 1999).

SERVICES

The value of services to the Armenian economy increased as a percentage
of GDP from 31 percent in 1990 to 35 percent in 1999. The main segments
of the service sector include tourism and financial services. Many
common Western services do not exist in Armenia. For instance, there are
no fast food or
retail
chains.

TOURISM.

During the first 5 years of independence, the tourist industry declined,
but since 1996, this trend has reversed itself. Since 1996, the number
of tourists has more than tripled but remains low compared to the 1980s
(about 21,000 visitors in 1999, including business tourism). The share
of tourism as a percentage of GDP was 1.7 percent in 1999. The tourism
infrastructure needs substantial development and modernization to keep
this industry growing.

FINANCIAL SERVICES.

During the Soviet period, the State Insurance Company provided mandatory
insurance for all citizens. The responsibility to regulate the insurance
market now rests in the hands of the Ministry of Finance. The Ministry
of Finance provides licenses for insurance companies, and in 2001 some
65 private and state companies were registered. As of 2001, a legal
framework concerning the insurance market was still being developed.
Domestic and international companies are treated equally under Armenian
law.

The banking system accounts for about 10 percent of GDP. In 1999, there
were 31 commercial banks. The main foreign banks are Mellat Bank of Iran
and Midland Bank of the United Kingdom. Only Midland Bank has
established Automated Teller Machines (ATMs), and only a limited number
of businesses in the major cities can accept credit cards as a form of
payment. The total capital of all commercial banks in Armenia is US$60
million. The largest private bank is HSBC Armenia Bank with assets of
US$9 million.

MONEY

The value of the dram has declined significantly since the 1990s. In
1995, 405.91 drams equaled US$1. However, by 2000 it took 539.53 drams
to equal US$1. This decline is the result of the continuing weaknesses
in the Armenian economy.

In 1993, the Yerevan Stock Exchange (YSE) was established, which was
followed by the establishment of 3 smaller exchanges. However, the total
value of these 4 exchanges was only US$1.67 million in 1999.

User Contributions:

i have heard about alot,as first country in the world adopted christianity.and i desire to be there .too which they will accepts me in.also do they produce computer accessories,laptop.and others things they producing.let me know.im planing to be in armenia.thanks